ChatGPT users in Nigeria will pay more as OpenAI includes 7.5% VAT

Effective November 1, 2025, users of ChatGPT in Nigeria will pay more for the subscriptions as OpenAI begins implementing a 7.5 per cent value-added tax (VAT) on all its paid services in line with Nigerian tax laws.

OpenAI in an email to its users yesterday, disclosed that the new charge will apply to all billable offerings, including ChatGPT Plus, increasing the monthly subscription fee from N31,500 ($20) to about N33,862.50 ($22.43).

For emphasis, ChatGPT is a powerful generative Artificial Intelligence (AI) chatbot developed by OpenAI. In simple terms, it’s a computer programme users can chat with, but instead of using pre-written answers, it generates human-like text in real-time.

While informing users of the new development, OpenAI said it is in line with Section 10 of the Value Added Tax Act, Laws of the Federation of Nigeria 2004 (as amended), and the Federal Inland Revenue Service (FIRS) Information Circular 2021/19.

Further, the firm advised users to include their Tax Identification Number (TIN) in their payment settings to ensure proper tax documentation.

This development from OpenAI aligned with other global tech giants such as Google, Netflix, Amazon, and Meta, which have already begun charging Nigerian users VAT on digital services. Recent reports indicate that Nigeria has generated billions in VAT from these foreign service providers.

Going by this, OpenAI becomes part of the country’s expanding digital tax ecosystem.

Recall that last December, the National Information Technology Development Agency (NITDA) revealed that foreign digital companies operating in the country, including Google, Microsoft, and TikTok, among others, paid a total of N2.55 trillion in taxes in the first half of 2024.